Thailand’s SEC Sues OKX for Operating an Unlicensed Crypto Exchange

Regulators worldwide are tightening their control over crypto exchanges, and Thailand is making its stance clear. The country's Securities and Exchange Commission (SEC) has launched legal action against OKX

Regulators around the world are keeping a close eye on crypto exchanges, and in a recent development, the attention of the Thai Securities and Exchange Commission (SEC) has turned to OKX, one of the biggest names in the industry.

The SEC has decided to take legal action against Aux Cayes FinTech Co Ltd, the company behind OKX, along with nine individuals linked to the platform. The reason for this move is allegedly the operation of an unapproved crypto trading platform within Thailand.

The charges against OKX stem from its activities in 2021, where it allegedly provided crypto trading services to Thai investors without obtaining the necessary approval from the SEC. According to a statement by the regulator, the exchange actively promoted its services through social media channels like Telegram, X (formerly Twitter), and Line OpenChat, charging a 0.1% trading fee, just like licensed exchanges in the country.

This, the SEC claims, is a violation of Thailand’s Emergency Decree on Digital Asset Businesses, which mandates that only approved firms can provide crypto services and charge fees for trading. The nine individuals named in the complaint allegedly aided in promoting OKX to investors in Thailand, and their involvement goes beyond simple marketing, as the SEC believes they played a role in the exchange’s unauthorized activities.

The case has been passed on to the Economic Crime Suppression Division (ECD), which will determine the subsequent legal action and impose penalties if required. If found guilty, OKX and the individuals involved could face hefty fines and imprisonment.

The SEC has also issued a warning to investors regarding the dangers of using unlicensed crypto platforms. As these platforms operate outside regulatory frameworks, there are no guarantees regarding the safety of investors’ funds or the legitimacy of the platforms themselves.

This could leave users susceptible to scams or financial losses, as the SEC notes. The regulator strongly advises traders to always verify the licensing status of a platform in the country of operation before investing.

This case is part of a broader trend of regulatory bodies stepping up their oversight of the crypto sector. As more governments introduce and enforce stricter regulations, exchanges that fail to comply with the legal requirements in the respective jurisdictions could face significant consequences.